BlackRock’s spot Ethereum exchange-traded fund (ETF), the iShares Ethereum Trust, is on track to hit $1 billion in investor inflows, which could make it the first in the batch of nine new funds directly holding the second-largest cryptocurrency to surpass the milestone since the funds started trading just three weeks ago.
BlackRock’s ETH ETF Amasses Nearly $1B Since Launch
Data collected from Farside Investors indicates that investors have deposited $901.1 million into BlackRock’s iShares Ethereum Trust ETF (ETHA) as of publication time.
These inflows put ETHA in the top six best performers of all ETFs launched since the start of 2024, according to the president of The ETF Store, Nate Geraci. Geraci is confident that BlackRock’s ETH ETF will cross the $1 billion threshold in inflows this week.
iShares Ethereum ETF has taken in $900+mil in < 3 weeks…Pretty much a lock to hit *$1bil* this week IMO.As mentioned previously, ETHA already top 6 launch of 2024 (4 of 5 others are spot btc ETFs).
— Nate Geraci (@NateGeraci) August 12, 2024
Officially launched on July 23, 2024, ETHA offers investors direct exposure to Ethereum without the hassle of storing and tax reporting complexities.
Notably, ETHA drew in $47 million on the crypto industry’s “Black Monday” on Aug. 5, which saw Bitcoin slump to $50,700 lows. Despite the nerve-racking market meltdown, the combined flows for ETHA on Aug. 5 and 6 alone put it in the top 10% of ETFs launched in 2024, Geraci previously noted.
BlackRock’s ETHA could be leading in spot Ether ETF inflows, but Grayscale’s rival fund, the Grayscale Ethereum ETF (ETHE), takes the crown as the largest ETH fund in the United States despite investors withdrawing roughly $2.3 billion from ETHE since its conversion from a trust.
ETHE currently holds $4.9 billion worth of Bitcoin in custody, while ETHA has around $761.9 million in assets under management (AUM). However, it’s only a matter of time before BlackRock’s ETHA takes the crown for the largest spot, Ethereum ETF, From Grayscale.
BlackRock’s Bitcoin vs. Ether Inflows
It’s worth mentioning that BlackRock’s iShares Bitcoin Trust (IBIT) was the first spot Bitcoin ETF in the market to hit $1 billion in inflows. Thanks to investors pouring in money at a record pace, IBIT crossed the milestone in just four days.
Data shows a slower accumulation rate for BlackRock’s Ether ETF than its IBIT fund. Although the demand for Ethereum ETFs is increasing, it has not yet matched the high investor appetite witnessed in Bitcoin ETFs owing to the lack of a staking mechanism.
That being said, the ETH ETFs are widely expected to pull billions of dollars worth of investor money in the coming months, which could be a bullish catalyst for Ether’s spot price.
ETH experienced a 3.2% jump on the past day to trade hands at $2,703 as of publication time.
